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TD Ameritrade Investor Movement Index: IMX Drops Again as Market Volatility ContinuesDespite a late-month rally fueled by retail earnings, the TD Ameritrade1 November Investor Movement Index® (IMXSM) continued its downward trend for the second consecutive month to 5.27, a 14 percent decline from its October reading of 6.10. The IMX is a proprietary, behavior-based index, aggregating Main Street investor positions and activity to measure what investors actually were doing and how they were positioned in the markets. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181210005118/en/ TD Ameritrade November 2018 Investor Movement Index (Graphic: TD Ameritrade) The reading is currently at its lowest point since May 2018, when it measured 5.06, and ranks "Moderately Low" relative to historic ranges. Prior to October, the IMX trended upward for a five month period. "Retail investors continued to engage with the market by increasing their overall exposure, but reduced equity holdings in stocks for less volatile investments, like fixed income related products. This shift lowered the IMX reading," said JJ Kinahan, chief market strategist at TD Ameritrade. Throughout November, U.S. equity markets responded positively to the results of U.S. midterm elections, comments from Federal Reserve Chairman Jerome Powell and strong holiday sales. Still, a variety of concerns may have weighed on retail investors including rising interest rates and slowing overseas economic growth coupled with geopolitical issues and falling crude oil prices. At its low point, the S&P 500 Index was down more than 10 percent from its previous closing high two months earlier and Nasdaq fell even more steeply. But by the end of November, the S&P 500 and Dow Jones Industrial Average were both up in excess of 3 percent, while the Nasdaq Composite gained more than 2 percent. "U.S. stocks took a hit in November and ending the month in positive territory may not have been enough to reassure investors," said Kinahan. "Concerns over the bond market and U.S.- China relations are top of mind for investors, and we'll need to keep an eye on interest rates and the state of the economy moving forward." Many TD Ameritrade clients used November's volatility to their advantage, frequently buying equities during market dips. Top equity buys included:
As 2018 comes to a close, retail investors have plenty of potentially market-moving events to consider in December. Geopolitical and trade concerns, particularly around China, should continue to be a central theme, as will Treasury yields and economic growth.
About the IMX For more information on the Investor Movement Index, including historical IMX data going back to January 2010; to view the full report from November 2018; or to sign up for future IMX news alerts, please visit www.tdameritrade.com/IMX. Additionally, TD Ameritrade clients can chart the IMX using the symbol $IMX in either the thinkorswim® or TD Ameritrade Mobile Trader platforms. Inclusion of specific security names in this commentary does not constitute a recommendation from TD Ameritrade to buy, sell, or hold. Past performance of a security, strategy, or index is no guarantee of future results or investment success. Historical data should not be used alone when making investment decisions. Please consult other sources of information and consider your individual financial position and goals before making an independent investment decision. The IMX is not a tradable index. The IMX should not be used as an indicator or predictor of future client trading volume or financial performance for TD Ameritrade. For the latest TD Ameritrade news and information, follow the company on Twitter (News - Alert), @TDAmeritradePR. Source (News - Alert): TD Ameritrade Holding Corporation
About TD Ameritrade Holding Corporation 1TD Ameritrade, Inc. is a broker-dealer subsidiary of TD Ameritrade Holding Corporation. Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org) /SIPC (www.SIPC.org). View source version on businesswire.com: https://www.businesswire.com/news/home/20181210005118/en/ |